The crypto market is stuck in the mud

Market Picture

The crypto market has been hovering in a narrow range for the past four days, adding just over 2.5% over the past seven days to $2.72 trillion. These are levels below the 200-day moving average, indicating that the balance of power is now on the sellers’ side. It is an important signal line separating bull from bear trends. It is also noteworthy that stabilisation is taking place on reduced volumes, saying that the current position is fragile despite the positive performance of stock indices in the last couple of trading sessions.

The cryptocurrency sentiment index is in fear territory, but during Bitcoin’s rebound over the past week, it has moved to neutral territory a couple of times.

The first cryptocurrency has managed to stabilise, but it is not yet on a solid growth track. Strong resistance in the form of the 200-day moving average has smashed attempts to grow over the past week and a half. The stabilisation of the price is helping the Relative Strength Index rise, which is reducing the oversold condition. Our concern is that this stabilisation is just digging a hole under Bitcoin, and it will fall into it.

News Background

According to CoinShares, global investments in crypto funds fell by $1.687bn last week. Bitcoin investments fell by $978m, Ethereum by $176m, and Solana by $2m. Investments in XRP rose by $2m and Cardano by $0.4m.

If the two stable correlations persist, bitcoin may move to recovery in the second quarter, Wells Fargo expects. We are talking about a positive correlation between BTC and money supply growth (M2) and a negative one with the dollar index.

Strategy (formerly MicroStrategy) reported buying 130 BTC for $10.7 million, the smallest bitcoin purchase in the firm’s history. The average purchase price was $82,981 per coin.

North Korean hacker group Lazarus currently owns 13,518 BTC ($1.13bn), more than the BTC assets in the wallets of the government of Bhutan or El Salvador, Arkham Intelligence calculated.

The FxPro Analyst Team